What Is The Best ₹1000 Per Month SIP For 20 Years?
Understand the best SIP mutual funds for a long term investment of 20 years or more. See the top funds currently being recommended on the Cube Wealth app by our mutual fund advisory partner, Wealth First.
October 26, 2023
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Most investors tend to start with a SIP of around ₹5000 to ₹10,000. But it is possible for investors to invest in SIP mutual funds for as low as ₹1000 using an app like Cube Wealth and create long term wealth. To do this, it is crucial to select the best SIP mutual funds.
This in fact is important regardless of the SIP amount. That's why many busy professionals use the Cube Wealth app. It gives you access to curated mutual funds handpicked by Wealth First.
Can A Small SIP Of ₹1000 Make A Big Difference?
Yes! If you're consistent with your ₹1000 SIP every month for 20 years then it has the power to compound and accumulate into a large corpus. This consistency can transform your future financial health. You can consult a Cube Wealth Coach or download the Cube Wealth App.
Here's an example of the power of a monthly ₹1000 SIP invested in a mutual fund with 8% returns for 20 years:
There are over 1000 SIP mutual funds available to Indian investors. Honestly speaking, it can get overwhelming to analyse each mutual fund to know which one best fits your goals.
Instead, you can leave the analysis to experts like Wealth First on the Cube Wealth app. But WF doesn’t just stop at analysis. They go one step further and handpick the best SIP mutual funds for you on Cube.
These best SIP mutual funds are based on your goals and risk appetite. Wealth First’s track record of beating the market by ~50% over the past decade ensures that you get access to only the best mutual funds.
That’s not all. Cube gives you access to convenient features like QuickSIP and SuperSIP to simplify the SIP mutual funds investment journey.
Ans. SIPs in equity, debt, international, and even liquid funds may be a suitable option for the long term. However, a lot can change over 20 years since what is the best today may not be the best tomorrow.
You need a reliable investment platform like Cube Wealth by your side that gives you access to expert advisors like Wealth First who can help you navigate through the ups and downs of the market.
Q. Where should I invest ₹1000 SIP per month?
Ans. There are more than 1000 mutual fund scheme variations in India so it would be wise to understand your risk appetite and investment goals before starting a SIP.
Cube Wealth is a reliable investment app that has o a detailed risk analysis quiz feature that gives you access to handpicked mutual funds that can work for you.
These mutual funds are selected by Wealth First, Cube’s investment advisory partner that has a track record of beating the market by ~50%. Explore the best SIPs on Cube Wealth now.
Q. Which mutual fund is best for 5 years?
There are various types of mutual funds available in the Indian market ranging from liquid funds to international funds, all of which cater to different investment goals and risk profiles.
That said, equity funds are generally considered to be one of the best investments for 5+ years because they invest in stocks that are known to be volatile in the short term but lucrative in the long term.
Bear in mind that equity funds are divided into various categories like small cap, mid cap, large cap, ELSS, and international funds. Cube’s advisor Wealth First currently recommends these best equity funds for Cube users who want to invest for 5 years or more:
Motilal Oswal Focused 25 Fund
Invesco India Growth Opportunities Fund
DSP Nifty Next 50 Index Fund
Invesco Pan European Equity Fund
Motilal Oswal Nasdaq 100 Fund of Fund
Motilal Oswal S&P 500 Index Fund
Check out the Cube Wealth app to see the complete list of best mutual funds for 5 years.
Q. What is the interest rate of SBI Mutual Funds?
The profits earned from mutual funds are known as “returns” while the term interest rate is generally reserved for the likes of fixed deposits. SBI mutual funds are renowned for their legacy and relatively consistent returns, which on the Cube Wealth app are:
SBI Liquid Funds: 3-6%
SBI Debt Funds: 4-6%
SBI Equity Funds: 12-16%
Q. Which bank SIP is best?
There are several famous AMCs associated with banks in India like Axis, SBI, IDFC, HDFC, ICICI, Kotak, Canara, and more. Each of these AMCs is known to give investors access to solid mutual funds.
In fact, some of the top bank SIPs are currently being recommended on Cube. These best bank SIPs include:
SBI Liquid Fund
IDFC Banking & PSU Debt Fund
HDFC Money Market Fund
Axis Focused 25 Fund
Kotak Equity Opportunities Fund
Canara Robeco Emerging Equities Fund
ICICI Prudential Smallcap Fund
Check out the Cube Wealth app for more information.
Q. How can I save 50 lakhs in 5 years?
Starting a Systematic Investment Plan (SIP) in mutual funds is known to be one of the best ways to save money and earn lucrative returns. Before you start a SIP, however, you’ll need a solid financial plan.
The plan will factor in your income based on which you’ll have to set aside a chunk of money every month and be consistent throughout the SIP duration to achieve your 50 lakh goal in 5 years.
Here’s how the math would look like in some scenarios:
Avg. Mutual Fund Returns
Total Amount After 5 Years
Q. Which SIP gives the highest return?
SIPs in equity funds are known to generate the highest returns amongst mutual funds. The logic behind this is simple - equity funds invest in stocks that have historically generated lucrative returns than bonds that debt funds invest in.
Watch this guide on Cube Wealth’s convenient QuickSIP feature
Selecting the best ₹1000 per month SIP for a 20-year investment horizon is a crucial financial decision. It involves considering various factors, including your financial goals, risk tolerance, and the historical performance of the funds. While there isn't a one-size-fits-all answer, SIPs offer a disciplined way to invest over the long term and harness the power of compounding. You can consult a Cube Wealth Coach or download the Cube Wealth App.
To identify the best SIP for your needs, it's essential to conduct thorough research, review the track record of different mutual funds, and assess the fund's expense ratios. Diversification is also a key element in risk management and potential returns. A well-rounded investment portfolio might include a mix of equity, debt, and hybrid funds to balance risk and reward.
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